half-yearly report on 30 june 2016 - gbl · consolidated results - economic presentation ......

Half-yearly Report on 30 June 2016

Experience. Our greatest asset.

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Half-yearly Report GBL on 30 June 2016

Key financial data ...................................................................04Message from the Managing Directors ....................................................... 04

Key fi gures .................................................................................................... 05

Financial position .......................................................................................... 05

Outlook for 2016 ........................................................................................... 05

Highlights .......................................................................................06

Chart and adjusted net assets .....................................08Organisation chart at 30 June 2016 ............................................................. 08

Adjusted net assets ...................................................................................... 08

Components of the adjusted net assets at 30 June ................................... 09

Portfolio at 30 June 2016 ..................................................11Strategic Investments ............................................................................12

Imerys ............................................................................................................12

SGS ...............................................................................................................12

LafargeHolcim ...............................................................................................13

Pernod Ricard ...............................................................................................13

adidas ............................................................................................................14

Total ...............................................................................................................14

Incubator Investments .......................................................................................15

Umicore .........................................................................................................15

Ontex ..............................................................................................................15

Sienna Capital ..........................................................................................16

Ergon Capital Partners ................................................................................. 16

Sagard .......................................................................................................... 16

Kartesia ........................................................................................................ 16

Mérieux Développement ............................................................................... 16

PrimeStone ................................................................................................... 16

BDT Capital Partners .................................................................................... 16

Risk management ...................................................................17

Consolidated results - Economic presentation ..................................................................................18Cash earnings ................................................................................................18

Net dividends from investments ....................................................................19

Mark to market and other non-cash ............................................................ 20

Operating companies and Sienna Capital ................................................... 20

Eliminations, capital gains, impairments and reversals ................................ 21

Half-yearly IFRS financial statements .................22Consolidated statement of comprehensive income .................................... 22

Consolidated balance sheet ........................................................................ 23

Consolidated statement of changes in shareholders’ equity ....................... 24

Consolidated statement of cash fl ows ......................................................... 25

Notes ....................................................................................................26Accounting policies and seasonality ............................................................ 26

Estimates and judgements ........................................................................... 26

Presentation of the consolidated fi nancial statements ................................. 26

Statutory Auditor’s report ...............................................39

Glossary ............................................................................................40

For further information ......................................................42

Note: the above-mentioned dates depend on the agenda of the Board of Directors meetings and are thus subject to change.

Financial calendar

4 November 2016Third quarter

2016 results

March 2017Annual results

2016

25 April 2017 Ordinary General

Meeting 2017

Early May2017First quarter

2017 results

End July 2017Half-year

2017 results

Half-yearly Reporton 30 June 2016 3

Key financial data The Board of Directors, held on 29 July 2016, approved GBL’s IFRS consolidated financial statements for the first half of 2016. These financial statements, produced in accordance with IAS 34 – Interim Financial Reporting, underwent a limited audit by the Auditor Deloitte.

In EUR million

(group’s share)

At the end of June 2016

At the end of June 2015

At the end ofMarch 2016

At the end ofDecember 2015

Consolidated net result (888) 720 (923) 1,026

Cash earnings 350 339 104 462

Adjusted net assets 14,977 15,915 14,762 15,188

Market capitalisation 11,853 11,650 11,700 12,720

Discount 20.9% 26.8% 20.7% 16.3%

Net debt 874 777 307 740

Loan to Value 5.5% 4.8% 2.0% 4.7%

Message from the Managing Directors The fi rst half of 2016 was once again characterised by macro-

economic and geopolitical uncertainties generating signifi cant volatility

in the fi nancial markets. The unexpected decision by the UK to leave

the European Union further increases these uncertainties, and this for

probably quite some time. Nevertheless, the materialisation of the Brexit

has benefi ted to certain classes of quality assets, such as sovereign

bonds, which is notably illustrated by the shift into negative territory

of the German 10-year Bund.

In this complex environment, GBL’s results for the fi rst half of 2016

were affected by exceptional items such as the impairments recorded

on the LafargeHolcim investment (EUR 1,682 million), partially offset

by the capital gains on the disposals of Total shares (EUR 428 million).

Cash earnings were resilient, recording a slight increase compared

with the fi rst half of 2015 despite the sales of Total shares carried out

at the end of 2015 and beginning of 2016.

Given the high yield of Total, the impact of these sales will be visible for

the full fi nancial year 2016, but it should eventually be offset by the yield

from the reinvestment of the disposal proceeds into new investments

and/or certain participations in the portfolio.

GBL has further implemented its strategy of portfolio rotation, notably

through forward sales of Total and ENGIE shares, while also taking

advantage of certain market weaknesses to increase its positions

into adidas, Umicore and Ontex (EUR 695 million of investments over

the period).

Given GBL’s representation on the group’s Supervisory Board and the

size of this investment (almost EUR 2 billion of market value), adidas

is now part of the Strategic Investments.

Finally, GBL has proactively managed its debt maturity profi le through

the partial repurchase of its bond exchangeable into ENGIE shares

(EUR 668 million in nominal value) and the forward sale of part of the

ENGIE shares freed through these repurchases.

Gérard Lamarche

Managing Director

Ian Gallienne

Managing Director

Cash earnings

+ 3% to EUR 350

million

Negative consolidated

net result of

EUR 888 million

notably due to the

impairment on the stake

in LafargeHolcim

EUR 1,071 million

of investments carried out

over the period

Half-yearly Reporton 30 June 20164

Outlook for 2016 The impairments recorded on the LafargeHolcim investment explain

the negative consolidated net result expected for the fi nancial year

2016. As a reminder, these impairments do not have any impact on

cash earnings or adjusted net assets.

As a result of the disposals of high-yielding Total shares carried

out at the end of 2015 and beginning of 2016, GBL’s cash earnings

will be negatively impacted in 2016, but in a temporary manner.

The disposal proceeds are indeed intended to be reinvested, which

will contribute to cash earnings, however gradually, depending on

the investments’ yield and pace.

In this context and in the absence of material events, GBL

expects to pay a 2016 dividend at least equivalent to that

relating to the fi nancial year 2015.

The results at 30 September 2016 will be published on

4 November 2016.

Key fi gures

Financial position Net debt increased from EUR 740 million (31 December 2015)

to EUR 874 million (30 June 2016) as a consequence of investments

(primarily adidas, Ontex and Sienna Capital) for EUR 1,071 million and

the dividend payment (EUR 461 million), these cash outfl ows being

partly balanced by cash earnings and divestments (EUR 1,102 million).

Relative to the portfolio’s value (adjusted for the treasury shares

underlying the convertible bonds) of EUR 15.8 billion, net debt was

5.5% at 30 June 2016.

The weighted average maturity of the gross debt was 1.2 year at the

end of June 2016 (1.7 year at the end of 2015).

Confi rmed credit lines amounted to EUR 2,150 million (currently

undrawn for an amount of EUR 1,950 million) and mature in

2020/2021.

This does not include the company’s commitments in respect

of Sienna Capital, which amounted to EUR 301 million at the

end of June 2016 (EUR 413 million at 31 December 2015).

Finally, at 30 June 2016, the 5,943,077 treasury shares (1)

represented 3.7% of the issued capital (3.8% at the end of 2015).

In EUR million 30 June 2016 31 December 2015

Retail bonds 350 350

Drawndown under bank credit lines 200 200

ENGIE exchangeable bonds 329 1,000

GBL convertible bonds 450 450

Debt related to prepaid forward sales 764 -

Others 43 31

Gross debt 2,136 2,031

Gross cash (excluding treasury shares) 1,263 1,291

Net debt 874 740

(1) Including 5 million treasury shares underlying GBL convertible bonds

Adjusted net assets In EUR million

Net result (group’s share) In EUR million

Cash earnings In EUR million

Gross dividend per share In EUR

502

206

(888)

720

(1000) (800) (600) (400) (200) 0 200 400 600 800

30 June 2013

30 June 2014

30 June 2015

30 June 2016

Year

of

pay

men

t

2.65

2.72

2.79

2.86

0 1 2 3

2013

2014

2015

2016

319

344

350

339

0 100 200 300 400

30 June 2013

30 June 2014

30 June 2015

30 June 2016

14,977

15,188

15,261

14,917

0 5,000 10,000 15,000 20,000

2013

2014

2015

30 June 2016


Strategic Investments

Disposal of shares

• Disposal of 27.5 million shares for an amount of

EUR 1.1 billion (consolidated capital gain of

EUR 428 million), representing 1.1% of the capital

• Disposals carried out in the market (10.4 million shares)

and through a private placement by way of an

accelerated bookbuilding process to institutional

investors (17.1 million shares)

• Forward sales related to 11.1 million Total shares

(average spot price of EUR 43.53, average forward price

of EUR 41.51, consolidated capital gain of EUR 209 million,

which will be recognised at maturity, in December 2016) for

a net amount of EUR 460 million

Partial repurchase of bonds exchangeable into ENGIE shares

• Repurchase of 6,683 bonds exchangeable into ENGIE

shares with a nominal value of EUR 668 million

• Forward sales related to 32.1 million ENGIE shares

(average spot price of EUR 14.18, average forward price

of EUR 13.62, consolidated loss of EUR 1 million, which

will be recognised at maturity, in October 2016) for a net

amount of EUR 437 million

Becomes a Strategic Investment, GBL at 7.2% of the capital

• Strengthening of the position in adidas, at 7.2% of the

capital at 30 June 2016 (4.7% at end December 2015),

for a market value of EUR 1,933 million

• Entrance of Ian Gallienne into the Supervisory Board

of the company

EUR 164 million invested in Ontex

• Signifi cant sthrenghtening of the stake in Ontex,

going from 7.6% at the end of December 2015 to 15.0%

at 30 June 2016, representing a market value of

EUR 318 million

Increased stake in Umicore

• Strengthening of the stake from 16.6% of the capital at

the end of December 2015 to 17.0% at 30 June 2016, for

a market value of EUR 881 million

• Second representative of GBL on the Board of Directors

of the company, following the appointment of Colin Hall at

the General Shareholders’ Meeting on 26 April 2016

Strategic InvestmentsStrategic Investments

Incubator Investments Incubator Investments

HighlightsDuring the first half of 2016, GBL continued the policy of proactively rotating its portfolio. This was reflected by the reduction of historic assets through a mix of spot and forward sales. These disposals are partially compensated by the strengthening of certain positions, such as adidas, Umicore and Ontex, with GBL taking advantage of windows of opportunity in a volatile stock market.


Acquisition of Looping

• Acquisition, on 1 March 2016, of an indirect majority

stake in Financière Looping Holding S.A.S. (Looping).

• Looping: an amusement park operator, which generates

turnover of around EUR 60 million and is a European

leader on the amusement park market

Sale of De Boeck

• Conclusion of an agreement by Ergon Capital Partners III

during the second quarter of 2016 relating to the sale of

De Boeck Education SA, De Boeck Digital SA and

Larcier Holding SA

• Capital gain on disposal of EUR 51 million (GBL share)

Agreement with Grand Frais

• Agreement signed, on 25 March 2016, between

Denis Dumont, founder of and majority shareholder

in Grand Frais, and a group of investors led by Sagard

• Agreement in order to acquire a minority stake in Prosol,

the parent company of the group

• Grand Frais: a French supermarket chain specialised in

the sale of fresh products with currently more than

170 shops

EUR 427 million invested

• EUR 427 million (about 84% of the total commitments

since its inception) invested by Kartesia in primary and

secondary transactions

USD 846 million invested in Keurig Green Mountain

• Acquisition of Keurig Green Mountain, Inc. in

March 2016, in partnership with the majority

shareholder JAB Holding Co

• USD 846 million invested, this amount remaining

subject to change depending on the fi nalisation of the

co-investment process

• Keurig Green Mountain: a group specialised in

personalised beverage systems with a panel of more

than 80 brands and 575 specialty beverages

Sienna Capital

Sienna Capital

Sienna Capital

Sienna Capital

Sienna Capital


Organisation chart at 30 June 2016% of share capital (% of voting rights)

Adjusted net assetsAt 30 June 2016, GBL’s adjusted net assets totalled EUR 15.0 billion (EUR 92.82 per share) compared with EUR 15.2 billion (EUR 94.13

per share) at the end of 2015, down 1.4% (EUR - 1.31 per share). Relative to the share price of EUR 73.46 (- 6.8% over the fi rst half),

the discount at the end of June 2016 was 20.9%, up compared with the end of 2015.

30 June 2016 31 December 2015 30 June 2015

Holding% in capital

Share priceIn EUR (1) In EUR million

PortfolioIn % In EUR million In EUR million

Strategic Investments 13,120 85.1 13,839 14,822

Imerys 53.8 57.53 2,465 16.0 2,761 2,940

SGS 15.0 2,226 2,417 15.7 2,067 1,922

LafargeHolcim 9.4 37.10 2,124 13.8 2,674 3,588

Pernod Ricard 7.5 100.10 1,991 12.9 2,093 2,061

adidas 7.2 128.45 1,933 12.5 890 350

Total 1.3 (2) 43.38 1,397 (2) 9.1 2,463 3,047

ENGIE 2.3 (2)(3) 14.51 793 (2) 5.1 893 910

Suez - - - - - 4

Incubator Investments 1,385 9.0 903 762

Umicore 17.0 46.27 881 5.7 720 626

Ontex 15.0 28.26 318 2.1 181 135

Others 186 1.2 2 1

Sienna Capital 912 5.9 715 674

Portfolio 15,417 100 15,457 16,258

Treasury shares 433 471 434

Exchangeable/convertible bonds (779) (1,450) (1,454)

Bank debt and retaill bond (1,357) (581) (550)

Cash/quasi-cash/trading (3) 1,263 1,291 1,227

Adjusted net assets (global) 14,977 15,188 15,915

Adjusted net assets per share (in EUR) (4) 92.82 94.13 98.63

Share price per share (in EUR) 73.46 78.83 72.20

Discount (in %) 20.9 16.3 26.8

The value of GBL’s adjusted net assets is published on GBL’s website on a weekly basis. At 22 July 2016, adjusted net assets per share stood

at EUR 95.77, up 1.7% compared with its level at the beginning of the year, refl ecting a discount of 21.4% on the share price on that date (EUR 75.29).

(1) Closing share prices in EUR, except for SGS in CHF(2) The ownership percentage and the value of the stakes with regards to the investments in Total and ENGIE included in the calculation of the adjusted net assets of GBL

do not take into account the forward sales (11.1 million and 32.1 million shares respectively) which will be settled in the fourth quarter of 2016. The fair value of these contracts is included in the item “Cash/quasi-cash/trading”

(3) The ownership percentage for ENGIE includes securities held in trading securities (0.1% of the capital, valued under “Cash/quasi-cash/trading”)(4) Based on 161,358,287 shares

3.7%

(0.0%)

Strategic Investments Incubator Investments

17.0%

(17.0%)

15.0%

(15.0%)

Sienna Capital

Chart and adjusted net assets

2.3%

(4.1%)

15.0%

(15.0%)

7.5%

(6.8%)

1.3%

(1.2%)

53.8%

(69.7%)

7.2%

(7.2%)

9.4%

(9.4%)


Components of the adjusted net assets at 30 JuneThe tables mentioned below present the reconciliation of each component of the adjusted net assets with the IFRS consolidated fi nancial

statements resumed from page 22.

Portfolio

At 30 June 2016, GBL’s portfolio included in the adjusted net assets amounted to EUR 15,417 million (EUR 15,457 million at 31 December 2015).

The reconciliation of this item with the IFRS consolidated fi nancial statements is set out below:


Portfolio value as presented in:

Adjusted net assets 15,417 15,457

Segment information (Holding) - pages 28 and 29 12,041 11,982

Available-for-sale investments 12,041 11,982

Reconciliation items 3,376 3,475

Fair value of Imerys, consolidated using the full consolidation method in IFRS 2,465 2,761

Value of Sienna Capital, consolidated in the Sienna Capital segment 912 715

Others (1) (1)

Treasury shares

Treasury shares, valued at their historic value, are recorded as a deduction from shareholders’ equity in IFRS. The treasury shares included in the adjusted

net assets (EUR 433 million at 30 June 2016 and EUR 471 million at 31 December 2015) are valued using the method set out in the glossary on page 40.

Gross debt

At 30 June 2016, gross debt of EUR 2,136 million (EUR 2,031 million at 31 December 2015) was detailed as follows:

In EUR million Note 30 June 2016 31 December 2015

ENGIE exchangeable bonds 329 1,000

GBL convertible bonds 450 450

Retail bonds 350 350

Drawdown under bank credit lines 200 200

Debt related to prepaid forward sales 764 -

Others 43 31

Gross debt, as per the adjusted net assets 2,136 2,031

Gross debt, included in the segment information (Holding) - pages 28 and 29:

Non-current fi nancial liabilities 823 1,797

Current fi nancial liabilities 1,091 -

Reconciliation items 222 234

Bank debt compensation - fi xed-term deposits 7 200 200

Impact of the recognition of fi nancial liabilities at amortised cost in IFRS 22 34


Gross cash

At 30 June 2016, gross cash excluding treasury shares stood at EUR 1,263 million (EUR 1,291 million at 31 December 2015). The table below

sets out the various components in accordance with GBL’s consolidated fi nancial statements:

In EUR million Note 30 June 2016 31 December 2015

Gross cash as presented in:

Adjusted net assets 1,263 1,291

Segment information (Holding) - pages 28 and 29 1,057 1,097

Trading assets 629 645

Cash and cash equivalents 436 436

Other current assets 61 62

Trade payables (2) (3)

Tax liabilities (5) (3)

Other current liabilities (62) (40)

Reconciliation items 206 194

Bank debt compensation - fi xed-term deposits 7 200 200

Others 6 (6)

Net debt

Net debt of EUR 874 million at 30 June 2016 (EUR 740 million at 31 December 2015) presented the following ratio:


Net debt (excluding treasury shares) 874 740

Market value of the portfolio 15,417 15,457

Market value of treasury shares underlying GBL convertible bonds 367 394

Loan to Value 5.5% 4.7%



IncubatorInvestments

Sienna Capital

At 30/06/16

85.1%

75% - 80%≈

EUR 12.0 billion

Long term objective

At 30/06/16

9.0%

10% - 15%≈

EUR 2.0 billion

Long term objective

At 30/06/16

5.9%

10%≈

EUR 1.5 billion

Long term objective

Portfolio at 30 June 2016GBL’s strategy consists in holding a diversified portfolio with a good balance between growth and yield investments, structured around three types of assets with a view to creating value for its shareholders over the long term.

Strategic InvestmentsInvestments generally larger than one billion euros, primarily in

listed companies, in which GBL can exercise a marked infl uence.

They represent the bulk of the portfolio.

Within these Strategic Investments held for the long term, GBL

periodically rotates them to ensure a balance between growth and

yield companies in the portfolio.

Incubator InvestmentsA limited selection of investments of lower size (EUR 250 million –

EUR 1 billion), listed or not, having the potential to eventually become

strategic, within which GBL seeks to become a core shareholder

and, for mid-sized companies, to possibly hold a majority stake.

In both cases, the ambition is to fi nd new opportunities that could

become an “incubator” of strategic assets over the long term.

Ultimately, this investment category could represent between 10%

and 15% of the value of the portfolio.

Sienna CapitalSienna Capital comprises signifi cant investments in private equity,

debt or specifi c thematic funds. GBL intends to reinforce the

diversifi cation of its portfolio and achieve its value creation objectives

while pursing the development of its alternative investments within

Sienna Capital. Sienna Capital’s assets could ultimately represent

up to 10% of the value of the portfolio.

Contribution to GBL’s portfolio

Overview of the future evolution of the portfolio

13.8% LafargeHolcim

9.1% Total

16.0% Imerys

15.7% SGS

12.9% Pernod Ricard

5.1% ENGIE

12.5% adidas

9.0% Incubator 5.7% Umicore

2.1% Ontex

1.2% Others

5.9% Sienna Capital

9.1%

13.8%

16.0%

15.7%

12.9%

5.1%

12.5%

5.9%

9.0%


Imerys is world leader in speciality minerals with almost 250 sites in 50 countries


Half-year results 2016• Turnover grew by 1.9% to EUR 2,097 million, buoyed by

external growth of 5.4%. In organic terms, turnover decreased

by 2.2% due to a drop in volumes

• Current operating income grew by 6.9% to EUR 293 million

after perimeter changes and the currency effect, but was

down 3.3% in organic terms. The margin increased by 70 bps

to 14.0% further to an improvement in the product price-mix

and the restructuring and effi ciency programmes. Net income

from current operations increased by 5.2%

• Compared with 31 December 2015, net debt increased

to EUR 1,524 million

Key fi gures(in EUR million) 30/06/2016 31/12/2015 30/06/2015

Turnover 2,097 4,087 2,057

Gross operating income (EBITDA) 417 745 381

Current operating income 293 538 274

Net income (group’s share) 158 68 145

Market capitalisation 4,584 5,126 5,483

Net debt 1,524 1,480 1,488

Outlook for 2016In a mixed economic environment, Imerys will continue to

implement its growth strategy as well as its active cost and

cash management approach while maintaining the fl exibility

of its production facilities. It will also benefi t from increasing

synergies at S&B.

Further to this, Imerys is confi dent that in the second half

of 2016 it will be able to generate growth in net income from

current operations in line with the performance observed

during the fi rst half of the year.

53.8%GBL’s share capital

GBL data as at 30 June 2016

Value of investment

(EUR million) ............................. 2,465

Voting right (%) ........................ 69.7

Contribution

to GBL’s portfolio (%) .............. 16.0

Financial communication

Vincent Gouley

Analyst/Investor Relations

Tel.: +33 (0)1 49 55 64 69

fi [email protected]

www.imerys.com

SGS is the worldleader in inspection, verification, testing and certification

Half-year results 2016• Turnover grew organically by 3.4% or by 7.0% on a currency-

neutral basis (external growth: 3.6%). After the negative

currency effect (- 1.6%), turnover increased by 5.4% to

CHF 2,901 million

• Adjusted operating income increased by 0.4% in organic

terms but fell by 0.2% to CHF 411 million after the currency

effect. The decrease in margin to 14.2% is mainly attributable

to the impact of investments in IT systems governing both

human resources management and laboratory operations

and the build out of shared services infrastructures.

Furthermore, certain acquisitions made will only contribute

to margin improvement in the medium term

• Compared with 31 December 2015, net debt rose to

CHF 990 million due notably to the dividend payment and

the share buyback plan

Key fi gures(in CHF million) 30/06/2016 31/12/2015 30/06/2015

Turnover 2,901 5,712 2,752

Adjusted gross operating income (EBITDA) 550 1,191 548

Adjusted operating income 411 917 412



Net debt 990 482 1,169

Outlook for 2016SGS is forecasting organic growth of between 2.5% and 3.5%,

combined with growth in the adjusted operating income at

constant exchange rates and solid cash fl ow generation.



Value of investment

(EUR million) ............................. 2,417

Voting right (%) ........................ 15.0

Contribution



Jean-Luc de Buman

Senior Vice President

Tel.: +41 (0)227 39 93 31

[email protected]

www.sgs.com





Value of investment

(EUR million) ............................. 1,991

Voting right (%) .......................... 6.8

Contribution


Pernod Ricard is world’s co-leader in Wines & Spirits

Half-year results 2015/16• Half-year turnover (July - December 2015) stands at

EUR 4,958 million, growing organically by 3% and illustrating

a gradual improvement in comparison with the previous

fi nancial year. Local brands are growing strongly and the

Top 14 is benefi ting from the improvement in the mix, with

volumes being stable

• Current operating income is also growing organically by 3%

to EUR 1,438 million, with nevertheless a slowdown in the

operating margin of 20 bps to 29.0% in organic terms

• Current net income is 9% higher thanks to the favourable

currency effect and the decline in fi nancial expenses

• Net debt increases by EUR 237 million in comparison with

30 June 2015 to EUR 9,258 million due to seasonality and

following the strengthening of the US dollar against the euro

Key fi gures(in EUR million)

31/12/2015

(H1)

30/06/2015

(Financial year)

31/12/2014

(H1)

Turnover 4,958 8,558 4,621

Current operating income (EBIT) 1,438 2,238 1,358

Current net income (group’s share) 909 1,329 834



Net debt 9,258 9,021 9,034

Outlook for 2016Pernod Ricard closes its fi nancial year on 30 June and will

publish its results on 1 September 2016. At the publication

of the nine-month’s turnover (+ 4%, of which 3% is organic

growth), group’s management reiterated its goal of internal

growth for current operating income of between 1% and 3%

for the whole of the fi nancial year.



Value of investment

(EUR million) ............................. 2,124

Voting right (%) .......................... 9.4

Contribution


LafargeHolcim is the world leader in construction materials: cement, aggregates and concrete

Half-year results 2016• LafargeHolcim’s turnover decreased by 1% in organic

terms and by 6% in reported fi gures, to CHF 13.3 billion

• Recurring EBITDA decreased by 3% in organic terms and by

7% in reported fi gures to CHF 2.5 billion, underpinned by a net

improvement in the 2nd quarter (6% increase in organic terms,

3% in reported fi gures) benefi ting in particular from a favourable

trend in prices as well as from the materialisation of synergies

• Net debt increased to CHF 18.1 billion compared to

CHF 17.3 billion at 31 December 2015

• Already-secured disposals have exceeded the initial objective

of CHF 3.5 billion for 2016. The objective has been raised

to CHF 5.0 billion by the end of 2017

Key fi gures(in CHF million)

30/06/2016 31/12/2015

(pro-forma)

30/06/2015

(pro-forma)

Turnover 13,342 29,483 14,217

Recurring EBITDA 2,529 5,751 2,711

Recurring EBITDA margin (%) 19.0 19.5 19.1

Net income 452 (2,085) 134

Market capitalisation 24,604 30,528 n.a.

Net debt (in billion) 18.1 17.3 22.5

Outlook for 2016LafargeHolcim expects to see a 1% to 3% increase in demand in

its markets. Moreover, the group is forecasting: i) high single-digit

organic growth in recurring EBITDA supported by incremental

synergies exceeding CHF 450 million; ii) investments under

CHF 2 billion; iii) the fi nalisation of the initial programme for

CHF 3.5 billion in disposals pursuant to the raised objective of

securing CHF 5 billion by the end of 2017; and iv) a reduction in

net debt to approximately CHF 13 billion by the end of the year.

The group also commits to retaining an Investment Grade rating

and to returning excess cash to shareholders, in particular

through a progressive dividend policy.


Tel.: +33 (0) 1 44 34 92 00 (Paris)

Tel.: +41 (0) 58 858 87 87 (Zurich)

[email protected]

www.lafargeholcim.com

Financial Communication

Julia Massies

Vice-President, Financial Communication

& Investor Relations

Tel.: +33 (0)1 41 00 42 02

[email protected]

www.pernod-ricard.com


adidas is the European leader in sports equipment


Total is a global, integrated oil and gas group, with a presence in the chemical industry

Half-year results 2016• During the fi rst half of 2016 turnover increased by 15% to

EUR 9.2 billion (+ 21% currency neutral). Growth was

supported by the adidas and Reebok brands

• Gross margin increased by 40 bps to 49%, driven by a

more favorable mix (products, prices and sales channel)

offsetting the negative currency impact

• Current operating income grew by 52% to EUR 905 million,

particularly as a result of the decrease in other operating costs

as a percentage of sales; the margin grew by 240 bps to 9.8%

• Net debt at 30 June 2016 was EUR 1,028 million


Turnover 9,191 16,915 7,990

Gross margin 4,517 8,168 3,897

Current operating income 905 1,094 596

Adjusted net income 641 686 383


Net debt 1,028 460 957

Outlook for 2016Management at adidas revised its guidance upwards further

to great brand momentum: sales growth in 2016 should grow

by 15 to 20%. This improvement is supported by double-digit

growth in all regions, except for Russia. The EBIT margin is

expected to be 7.5% (vs. 6.5% in 2015).

Half-year results 2016• The environment was characterised by a 31% drop in the price

of Brent and refi ning margins, while the dollar remained stable

compared to the euro

• In this context, the adjusted net operating income of the

segments fell by 28% to USD 4.4 billion: substantial fall in

Upstream (- 44% despite a 4% increase in production), as well

as in the Refi ning-Chemicals (- 12%) and Marketing Services

(- 16%) arms. Adjusted net income (group’s share) and net profi t

per share fell by 34% and 36% respectively. ROACE shrank

to 7.5%

• Net debt increased in the half year, leading to a gearing

of 30.0%

Key fi gures(in USD million) 30/06/2016 31/12/2015 30/06/2015

Turnover 70,056 165,357 87,028

Adjusted net operating income

of the segments 4,401 11,362 6,114

Adjusted net income (group’s share) 3,810 10,518 5,687

Net income (group’s share) 3,694 5,087 5,634

Market capitalisation (in EUR million) 108,586 100,689 104,383

Net debt 29,828 26,586 25,631

Outlook for 2016Total will continue with the implementation of its portfolio

optimisation and cost-reduction strategy. In the Upstream

segment, start-ups of facilities should enable a 4% production

increase in 2016. In the Downstream segment, the refi ning

margins seen at the beginning of the third quarter of 2016 are

decreasing, while they remain solid in petrochemicals.



Value of investment

(EUR million) ............................. 1,933

Voting right (%) .......................... 7.2

Contribution




Value of investment

(EUR million) ............................. 1,397

Voting right (%) .......................... 1.2

Contribution

to GBL’s portfolio (%) ................ 9.1


Sebastian Steffen

Investor Relations World of Sports

Tel.: +49 9132 84 3296

[email protected]

www.adidas-group.com

Financial Communication

Mike Sangster

Director of Financial Communication

Tel.: +44 (0)207 719 79 62

[email protected]

www.total.com


Umicore is a group specialised in materials technology and the recycling of precious metals

Incubator Investments

Ontex is a global leader specialised in the field of hygienic consumables

Half-year results 2016• Turnover grew by 1% to EUR 1,354 million and recurring EBIT

increased by 3% to EUR 176 million, refl ecting strong growth

in Automotive Catalysts and Rechargeable Battery Materials

which more than offset the impact of lower prices for metals

on the various recycling activities

• ROCE increased slightly to 14.6%, compared to 14.4% for the

fi rst half of 2015

• Net debt amounted to EUR 298 million, down EUR 24 million

compared to 31/12/2015, due in particular to a decline in

investments over the period


Turnover (excluding metal) 1,354 2,629 1,336

Recurring EBIT 176 330 171

Net recurring income (group’s share) 111 246 131



Net debt 298 321 314

Outlook for 2016The group has announced an annual recurring EBIT objective

of between EUR 345 and 365 million, this fi gure being based

on the assumption that prices for metals will stay at their

current level.

Half-year results 2016• Turnover stands at EUR 963 million, a drop of 0.1% in organic

terms but an increase of 12.9% in reported fi gures, buoyed

by the acquisition of Grupo Mabe

• Adjusted EBITDA grew by 12.2%, particularly as a result of the

impact of Grupo Mabe, operational excellence efforts and lower

prices of oil-related commodities; the margin dropped slightly

by 7 bps to 12.8% further to a negative currency impact

• Net debt at 30 June 2016 was EUR 660 million, up by

EUR 255 million compared to 31 December 2015 following

the acquisition of Grupo Mabe (closing in early March 2016)


Turnover 963 1,689 853

Adjusted EBITDA 123 209 110

Operating income (EBIT) 95 169 91

Net recurring income (group’s share) 66 103 59


Net debt 660 (1) 405 505

(1) Net debt at 30 June 2016 includes earn-outs on acquisitions

Outlook for 2016Management has confi rmed its willingness to reach 4 to 6%

growth during the second half of the year, supported by the

economic recovery in Western Europe. Ontex is also forecasting

an adjusted EBITDA margin that is at least equal to the level for

2015 (12.4%), despite the dilutive effect of the Grupo Mabe deal.



Value of investment

(EUR million) ................................ 881

Voting right (%) ........................ 17.0

Contribution




Value of investment

(EUR million) ................................ 318

Voting right (%) ........................ 15.0

Contribution



Evelien Goovaerts

Tel.: +32 (0)2 227 78 38

[email protected]

www.umicore.com


Philip Ludwig

Investor Relations

Tel.: +32 53 333 730

[email protected]

www.ontexglobal.com


Key fi gures

In EUR million - 30/06/2016

Total

Committed capital 563 381 150 75 150 113 1,432

Callable capital 99 65 12 45 - 80 301

Invested capital 464 316 139 30 150 33 1,131

Reimbursements 261 184 7 - - - 452

Value of the shareholding (Sienna Capital’s portfolio)

357 204 142 28 153 34 919

Share in Sienna Capital’s portfolio

39% 22% 15% 3% 17% 4% 100%

Financial information

Aurélie Comptour

CFO

[email protected]

www.sienna-capital.com

GBL intends to reinforce the diversifi cation of its portfolio and achieve its value-creation objectives by pursuing the development of its alternative investments within its subsidiary Sienna Capital.

Sienna Capital aims to generate attractive risk-adjusted returns by constructing a diversifi ed portfolio of investment managers performing well in their area of expertise (e.g. private equity, debt and specifi c thematic funds).

Sienna Capital is an active and involved partner for the managers it invests with. Sienna Capital supports managers by helping them raise money, attract talent and source investment opportunities as well as by providing advice on good governance and best practices.

As at 30 June 2016, Sienna Capital’s portfolio was composed

of six managers deploying capital via eleven funds into more

than sixty underlying individual portfolio companies. The

portfolio includes investments in private equity funds (Ergon,

Sagard), a debt fund (Kartesia), healthcare growth capital funds

(Mérieux Développement), a fund whose strategy consists of

acquiring long-term shareholdings in mid-sized European

companies (PrimeStone) and a fund who provides long-term

capital to family- and founder-led businesses (BDT Capital

Partners). The portfolio of Sienna Capital as of 30 June 2016

was valued at EUR 919 million which represents 5.9%

of GBL’s portfolio.

Half-year results 2016• During the fi rst half of 2016, the Ergon, Sagard, Mérieux and

BDT funds made new investments. Through Ergon Capital

Partners III, Sienna Capital invested EUR 35 million in Looping.

Sienna Capital also invested EUR 26 million in Sagard III

to partially fi nance some acquisitions such as Prosol (Grand

Frais). Sienna Capital invested EUR 10 million in Mérieux

Participations II to acquire shares in Keranova and NovaCap

and EUR 15 million in BDT to acquire shares in Truck-Lite and

Keurig Green Mountain.

• At 30 June 2016, Kartesia had invested EUR 427 million

(representing approximately 84% of the fund) in primary and

secondary transactions. Kartesia’s portfolio comprises 34 lines,

spread across eight countries and eighteen industries.

Outlook for 2016• New investments are expected for several funds included

in Sienna Capital’s portfolio. Disposals are likewise planned

for the Ergon, Sagard and Kartesia funds.

• Sienna Capital is also reviewing selective new investment

opportunities.


Risk managementGBL will continue to face the same risks in the second half of 2016. Each of the major investments in the portfolio held by GBL is exposed to the

specifi c risks indicated in GBL’s 2015 annual report (p. 41) which refers to the reference documents of the different shareholdings.

This table categorises the main risks related to GBL’s activities and the various factors and measures mitigating their potential negative impact.

A chapter included in the Annual Report 2015 (see pages 40 to 47 and 167-168) deals with these risks, their management and the monitoring

activities introduced by the company.

Main risks Risk factors Mitigants

Exogenous

Risks associated with

shifts in external factors

such as economic, political

or legislative change

• Changes in fi nancial markets, notably with

regards to the volatility of share price and

interest and foreign exchange rates

• Changes in macroeconomic variables (growth

rates, monetary policy, inflation, raw materials

and commodity prices, etc.)

• Regulatory or budgetary policy changes, for

example involving tax reform

• Specifi c developments affecting certain

geographic areas (Eurozone, emerging

countries, etc.)

• Geographic and sector diversifi cation of the

portfolio with differentiated cyclical exposure

• Ongoing legislative monitoring of the primary

regions of activity

• Systematic monitoring and analysis of macro-

economic scenarii, markets and investment

thesis

Strategy

Risks resulting from the

defi nition, implementation

and continuation of the

group’s guidelines and

strategic developments

• Differing visions or understanding of the

assessment of strategic priorities and inherent

risks

• Validity of the parameters underlying investment

thesis

• Geographic or sector concentration

of investments

• Formal decision-making process involving all

governance bodies and the management

• Ongoing monitoring of key performance

indicators and regular updates of assumptions

and forecasts

• Periodic portfolio review at different hierarchical

levels

• Investment diversifi cation

Cash and cash equivalents, fi nancial instruments and fi nancing

Risks associated with the

management of cash and

cash equivalents, fi nancial

instruments and fi nancing

• Access to liquidity

• Debt leverage and maturity profi le

• Quality of counterparties

• Interest rate exposure

• Volatility of derivative instruments

• Relevance of forecasts or expectations

• Developments in fi nancial markets

• Rigorous and systematic analysis of considered

transactions

• Diversifi cation of investments and counterparties

• Limitation of net indebtedness

• Defi nition of trading limits

• Strict counterparty selection process

• Formal delegations of authority with the aim to

achieve appropriate segregation of duties

• Systematic reconciliation of cash data and the

accounting

Operations

Risks resulting from

inadequacies or failures in

internal procedures, staff

management or systems

in place. Risk of non-

compliance with quality

standards, contractual

and legal provisions and

ethical norms

• Complexity of the regulatory environment

• Adequacy of systems and procedures

• Exposure to fraud and litigation

• Retention and development of employees’ skills

• Internal procedures and control activities

regularly reviewed

• Hiring, retention and training of qualifi ed staff

• Implementation of delegations of authority to

ensure an appropriate segregation of duties

• Maintenance of and investments in IT systems

• Internal Code of Conduct and Corporate

Governance Charter

GBL indirectly faces specifi c risks related to the participations, which are

identifi ed and addressed by the companies themselves within the framework

of their own internal control. The analysis conducted by these companies in

terms of risk identifi cation and internal control is described in the reference

documents available on their website.

Specifi c risks related to the participations

Imerys: www.imerys.com

SGS: www.sgs.com

LafargeHolcim: www.lafargeholcim.com

Pernod Ricard: www.pernod-ricard.com

adidas: www.adidas-group.com

Total: www.total.com

Umicore: www.umicore.com

Ontex: www.ontexglobal.com


Consolidated results Economic presentationThis section focuses on the economic presentation of GBL’s income statement to determine IFRS net profit or loss. The financial statements, prepared in accordance with IAS 34, are presented from page 22 onwards.

In EUR million 30 June 2016 30 June 2015

Group’s share

Cash earnings

Mark to market and other non-cash

items

Operating companies

(associated or consolidated) and

Sienna Capital

Eliminations,capital gains,

impairments and reversals Consolidated Consolidated

Profi t (loss) of associates and consolidated

operating companies - - 141.7 - 141.7 (13.1)

Net dividends from investments 361.2 (16.1) - (93.2) 251.9 191.7

Interest income (expenses) (13.4) (4.3) (2.4) - (20.1) (15.2)

Other fi nancial income (expenses) 27.2 62.1 - (17.0) 72.3 97.8

Other operating income (expenses) (15.7) 2.7 (8.9) - (21.9) (21.7)

Gains (losses) from disposals, impairments and

reversals of non-current assets (9.8) (2.5) (0.2) (1,299.8) (1,312.3) 480.4

IFRS consolidated net result (6 months 2016) 349.5 41.9 130.2 (1,410.0) (888.4)

IFRS consolidated net result (6 months 2015) (1) 339.4 113.8 (21.6) 288.3 - 719.9

Consolidated net result, group’s share, at 30 June 2016 stood at

EUR - 888 million, compared with EUR 720 million at 30 June 2015.

This result was primarily affected by:

• the impairments recognised for LafargeHolcim and ENGIE

amounting to EUR - 1,682 million and EUR - 44 million respectively;

• the net capital gain made on the sale of 1.1% of Total’s capital,

for EUR 428 million (EUR 42 million in 2015);

• the net dividends from investments amounting to EUR 252 million;

• the Imerys contribution amounting to EUR 86 million;

• the mark to market of the derivative components embedded in the

exchangeable and convertible bonds which also had a positive

impact of EUR 72 million (EUR 80 million in 2015).

Cash earnings(EUR 350 million compared with EUR 339 million)


Net dividends from investments 361.2 340.2

Interest income (expenses) (13.4) (6.8)

Other income (expenses):

fi nancial 27.2 18.9

operating (15.7) (12.9)

Gains (losses) from disposals, impairements and reversals of non-current assets (9.8) -

Total 349.5 339.4

(1) The figures presented for comparative purposes have been restated in order to take into account the reclassification of the elimination of the dividend on treasury shares (EUR - 17 million), previously included under Mark to market and now in the “Eliminations, capital gains, impairments and reversals” column


Net dividends from investments increased by EUR 21 million in the fi rst half of 2016 compared with 2015.

Net dividends from investmentsIn EUR million 30 June 2016 30 June 2015

LafargeHolcim 77.9 77.1

Imerys 75.0 70.5

SGS 72.9 67.1

Total (interim and balance) 38.8 74.6

ENGIE (balance) 23.2 23.2

adidas 18.8 2.6

Sienna Capital 18.2 -

Pernod Ricard (interim) 17.9 16.3

Umicore (balance) 13.3 7.3

Ontex 5.2 1.0

Suez - 0.5

Total 361.2 340.2

These changes primarily refl ect the increase in unit dividends from

Sienna Capital, Imerys and Pernod Ricard, as well as the increase

in dividends from the Incubator portfolio and from adidas following

the acquisitions made. The partial disposal of the stake in Total has

reduced this growth.

LafargeHolcim distributed a dividend of EUR 1.36 per share for

2015, contributing EUR 78 million at 30 June 2016.

Imerys approved in the second quarter of 2016 an annual

dividend of EUR 1.75 per share (EUR 1.65 in 2015), corresponding

to a total collection of EUR 75 million for GBL.

SGS paid an annual dividend of CHF 68 per share (unchanged

compared with 2015), representing EUR 73 million at 30 June 2016.

Total approved a dividend of EUR 2.44 per share for 2015 and

paid, during the half year, the last quarterly interim dividend and

the balance on the 2015 dividend, i.e. EUR 0.61 and EUR 0.61

per share respectively. Total’s contribution to the results for the

fi rst six months thus amounted to EUR 39 million.

ENGIE paid in the second quarter of 2016 the balance of the

dividend for 2015 of EUR 0.50 per share (unchanged compared

with the previous year), representing a contribution of EUR 23 million.

adidas distributed a dividend of EUR 1.6 per share in the second

quarter of 2016 (compared with EUR 1.5 per share in 2015),

representing EUR 19 million at 30 June 2016.

ECP II paid, during the fi rst half of 2016, a dividend of

EUR 18 million (attributable to GBL).

Pernod Ricard declared an interim dividend of EUR 0.90 per

share in the second quarter of 2016 (compared with EUR 0.82

per share the previous year), representing EUR 18 million, the

payment of the balance of the dividend being expected in the

second half of the year.

Umicore approved during the second quarter of 2016 the balance

of the dividend for 2015 of EUR 0.70 per share (compared with

EUR 0.50 the previous year). The contribution of Umicore

amounted to EUR 13 million at 30 June 2016.

Ontex approved a dividend of EUR 0.46 per share during the fi rst

half of 2016 (compared with EUR 0.19 per share the previous

year), corresponding to an amount of EUR 5 million for GBL.

Net interest expenses (EUR 13 million) came back to their

normal level this semester, after having been positively impacted

last year by the reversal of a provision for interest payable in

relation to litigation.

Other fi nancial income (expenses) (EUR 27 million) mainly

comprised trading income of EUR 12 million (EUR 5 million in

2015) and dividends collected on treasury shares (EUR 17 million).

Other operating income (expenses) amounted to EUR - 16 million

at the end of June 2016 and increased compared with the previous

year.

Gains (losses) from disposals, impairments and reversals of

non-current assets of EUR 10 million include the total cost

relating to the repurchases of exchangeable bonds into ENGIE

shares (including banking fees).


Mark to market and other non-cash items(EUR 42 million compared with EUR 114 million)


Net dividends from investments (16.1) (0.9)


Other fi nancial income (expenses) 62.1 123.6

Other operating income (expenses) 2.7 (3.3)

Gains (losses) from disposals, impairments and reversals of non-current assets (2.5) -

Total (1) 41.9 113.8

Net dividends from investments include, on the one hand, the

reversal of Total’s interim dividend which had been recognised under

this item at the end of 2015 and, on the other hand, the recognition of

the fi rst interim dividend of 2016, announced in April 2016 and which

will be paid in October 2016.

Interest income (expenses) include the impact of the valuation at

amortised cost of the exchangeable bonds into ENGIE shares and

the convertible bonds into GBL shares (EUR - 4 million compared

with EUR - 6 million last year).

Furthermore, the item “Other fi nancial income (expenses)”

includes the mark to market of the trading portfolio and derivative

instruments (EUR - 10 million compared with EUR 43 million in

2015) as well as the derivative component embedded in the

exchangeable and convertible bonds (EUR 72 million compared

with EUR 80 million in 2015).

This non-monetary gain of EUR 72 million includes the change in the

value of the call options on underlying securities implicitly embedded

in the outstanding exchangeable and convertible bonds issued in

2013. In 2016, the change in value of these derivative instruments has

been primarily attributable to the fl uctuations, since 1 January 2016,

in the market price of the shares underlying the bonds and to the

completed repurchases.

Profi t at 30 June 2016 illustrates, as commented on in previous

closings, the accounting asymmetry and volatility of periodic results,

which will persist throughout the lifetime of the exchangeable and

convertible bonds.

The group applied hedge accounting for its forward sales

on 32.1 million ENGIE shares and 11.1 million Total shares (2).

At 30 June 2016 the fair values of these contracts were equal to

EUR - 13 million and EUR - 7 million (3), respectively, and were

accounted for under shareholders’ equity.

Operating companies (associates or consolidated) and Sienna Capital(EUR 130 million compared with EUR - 22 million)


Profi t (loss) of associates and consolidated operating companies 141.7 (13.1)


Other operating income (expenses) (8.9) (5.5)

Gains (losses) on disposals, impairments and reversals of non-current assets (0.2) (0.2)

Total 130.2 (21.6)

Net profi t (loss) of associates and consolidated operating companies amounted to EUR 142 million in 2016 compared with

EUR - 13 million for the same period in 2015:


Imerys 86.3 77.5

Lafarge - (100.4)

Sienna Capital 55.4 9.8

ECP I & II (0.1) 13.6

Operating subsidiaries of ECP III 48.7 (4.8)

Kartesia 6.8 0.6

Mérieux Participations II - 0.4

Total 141.7 (13.1)


(2) If such sales had been executed spot, the cash earnings at 30 June 2016 would have been negatively impacted by EUR 5 million (3) At the maturity of the forward sales contracts, mark to market will be equal to 0 and, at the same time, a realised capital gain of EUR 209 million will be recognised for Total and

a realised capital loss of EUR 1 million will be recognised for ENGIE


Imerys (EUR 86 million compared with EUR 78 million)

Net income from current operations increased by 5.3% to

EUR 184 million in the fi rst half of 2016 (EUR 175 million in the fi rst half

of 2015), notably as a result of the improved current operating income,

at EUR 293 million (EUR 274 million in the fi rst half of 2015). The net

result, group’s share, amounted to EUR 158 million (EUR 145 million

in the fi rst half of 2015).

Imerys contributed EUR 86 million to GBL’s consolidated net result

in 2016 (EUR 78 million in 2015), refl ecting the consolidation rate for

Imerys of 54.6% in 2016 (53.4% in 2015).

The press release related to the Imerys’ results for the fi rst half of 2016

is available at www.imerys.com.

Lafarge (EUR - million compared with EUR - 100 million)

Lafarge had been consolidated in GBL’s results according to the

equity method until 30 June 2015. At 30 June 2016, GBL held 9.4%

of LafargeHolcim and this stake has been accounted as an asset

available-for-sale since 10 July 2015.

Based on a participation rate of 21.0%, Lafarge had contributed

EUR - 100 million to GBL’s result at 30 June 2015.

Sienna Capital (EUR 55 million compared with EUR 10 million)

Net profi t (loss) of associates and consolidated operating companies

at Sienna Capital totalled EUR 55 million, compared with

EUR 10 million last year. The result for the period mainly included

the net capital gain on the sale of De Boeck’s activities by ECP III

(EUR 51 million attributable to GBL).

The result for the fi rst half of 2015 refl ected the net capital gain on the

sale of Joris Ide by ECP II (EUR 14 million attributable to GBL).

Eliminations, capital gains, impairments and reversals(EUR - 1,410 million compared with EUR 288 million)


Eliminations of dividends (Lafarge, Imerys and Sienna Capital) (93.2) (147.6)

Other fi nancial income (expenses) (GBL and Suez) (17.0) (44.7)

Capital gains on disposals (Total and Suez) 428.1 77.4

Impairments on AFS investments and reversals of non-current assets (LafargeHolcim, ENGIE and others) (1,727.9) 403.2

Total (1) (1,410.0) 288.3

Elimination of dividends

Net dividends from operating investments (associates or consolidated

companies) were eliminated and represented EUR 93 million from

Imerys and Sienna Capital.

Other fi nancial income (expenses)

This item includes the elimination of the dividend on treasury shares

amounting to EUR - 17 million. In 2015, the item also included the

EUR 28 million expense generated by the conversion of exchangeable

bonds into Suez shares which was due to the difference between the

exchange price (EUR 11.45 per share) and the average share price of

the converted shares in the fi rst half of 2015 (EUR 17.16 per share).

This loss was partly offset by the recycling of revaluation reserves

restated as capital gains on disposals (see below).

Capital gains on disposals

This item includes the capital gain from the sale of 1.1% of Total’s capital

for EUR 428 million. In 2015, the item included on the one hand the

capital gain from the sale of 0.1% of Total’s capital for EUR 42 million and,

on the other hand, the result from early conversions of exchangeable

bonds into Suez shares for EUR 35 million (corresponding to the

recycling of the revaluation reserves of the shares related to the

converted bonds, calculated on the basis of the average share price

of Suez over the fi rst half of 2015).

Impairments on AFS investments and reversals

of non-current assets

At 30 June 2016, this item included mainly:

• An impairment of EUR 1,682 million on the LafargeHolcim

investment, adjusting the book value of these securities

(EUR 66.49 per share) to their market value at 30 June 2016

(EUR 37.10 per share); and

• An additional impairment of EUR 44 million, accounted for the

ENGIE investment in the fi rst quarter of 2016, thus adjusting the

book value of these securities (EUR 14.44 per share at end

December 2015) to their market value at 31 March 2016

(EUR 13.64 per share).

At 30 June 2015, GBL considered that the criteria of the IFRS 5 –

Non-current assets held for sale and discontinued operations were

fulfi lled and led to the conclusion that the merger of Lafarge with

Holcim was highly probable. As a consequence:

• GBL accounted for the Lafarge investment under the equity

method until 30 June 2015;

• The investment was reclassifi ed as “assets held for sale” and

was revalued at its fair value on 30 June 2015, leading to a partial

reversal of impairment previously booked (EUR 403 million,

corresponding to the difference between (1) the latest value under

the equity method on 30 June 2015 (EUR 52.6 per share)

and (2) the stock price on 30 June 2015 (EUR 59.2 per share)).



Half-yearly IFRS financial statements

In EUR million Notes 30 June 2016 30 June 2015

Share of profi t (loss) of associates 3 6.7 (85.8)

Net dividends from investments 4 251.9 191.7

Other operating income (expenses) from investing activities 5 (21.9) (21.7)

Gains (losses) from disposals, impairments and reversals of non-current assets (1,312.3) 480.4

Investments in associates 3 - 403.1

Available-for-sale investments 4 (1,312.1) 77.5

Other non-current assets (0.2) (0.2)

Financial income (expenses) from investing activities 6 52.2 82.6

Profi t (loss) from investing activities (1,023.4) 647.2

Turnover 2,262.2 2,180.2

Raw materials and consumables (717.6) (711.2)

Employees expenses (485.9) (465.8)

Depreciation on tangible and intangible assets (131.7) (127.8)

Other operating income (expenses) from operating activities 5 (605.4) (643.9)

Financial income (expenses) from the operating activities 6 (36.3) (28.0)

Profi t (loss) from consolidated operating activities 285.3 203.5

Income taxes (73.0) (62.6)

Consolidated profi t (loss) for the period (811.1) 788.1

Attributable to the group (888.4) 719.9

Attributable to non-controlling interests 77.3 68.2

Other comprehensive income:

Items that will not be reclassified subsequently to profi t or loss

Actuarial gains (losses) (46.4) 51.9

Share of other comprehensive income (loss) of associates - 3.4

Total items that will not be reclassified to profi t or loss (46.4) 55.3

Items that may be reclassified subsequently to profi t or loss

Available-for-sale investments - change in fair value 8 296.5 193.8

- recycling in result on disposals/impairment 8 1,230.0 (70.8)

Share of other comprehensive income (loss) of associates - 106.7

Currency translation adjustments for consolidated companies 13.6 111.9

Cash fl ow hedges (3.9) 0.6

Total items that may be reclassified to profi t or loss 1,536.2 342.2

Other comprehensive income (loss) after tax 1,489.8 397.5

Comprehensive income (loss) 678.7 1,185.6

Attributable to the group 609.0 1,040.6

Attributable to non-controlling interests 69.7 145.0

Consolidated earnings per share for the period 8

Basic (5.72) 4.64

Diluted (5.72) 4.61

Consolidated statement of comprehensive income


In EUR million Notes 30 June 2016 30 December 2015

Non-current assets 17,291.2 17,124.1

Intangible assets 281.2 338.9

Goodwill 1,761.6 1,743.2

Tangible assets 2,251.1 2,192.1

Investments 12,811.4 12,646.0

Investments in associates 3 367.2 329.9

Available-for-sale investments 4 12,444.2 12,316.1

Other non-current assets 97.3 93.7

Deferred tax assets 88.6 110.2

Current assets 3,823.1 3,281.5

Inventories 762.3 776.1

Trade receivables 699.4 644.4

Trading fi nancial assets 638.3 658.2

Cash and cash equivalents 7 1,364.6 898.0

Other current assets 358.5 304.8

Total assets 21,114.3 20,405.6

Shareholders' equity 8 14,717.3 14,543.5

Share capital 653.1 653.1

Share premium 3,815.8 3,815.8

Reserves 8,937.1 8,776.7

Non-controlling interests 1,311.3 1,297.9

Non-current liabilities 4,046.4 4,379.6

Financial liabilities 7 3,197.5 3,488.6

Provisions 312.1 306.1

Pensions and post-employment benefits 379.5 329.6

Other non-current liabilities 64.8 135.9

Deferred tax liabilities 92.5 119.4

Current liabilities 2,350.6 1,482.5

Financial liabilities 7 1,363.5 476.5

Trade payables 509.7 496.0

Provisions 22.5 20.8

Tax liabilities 103.7 70.9

Other current liabilities 351.2 418.3

Total shareholders’ equity and liabilities 21,114.3 20,405.6

Consolidated balance sheet


In EUR million CapitalShare

premiumRevaluation

reservesTreasury

shares

Currency translation

adjustmentsRetained earnings

Share holders’ equity –

group’s share

Non-controlling

interests

Share-holders’

equity

At 31 December 2014 653.1 3,815.8 2,565.7 (248.7) (283.4) 6,670.2 13,172.7 1,111.5 14,284.2

Consolidated profi t (loss) for the year - - - - - 719.9 719.9 68.2 788.1

Other comprehensive income (loss) - - 123.8 - 165.3 31.6 320.7 76.8 397.5

Total comprehensive income (loss) - - 123.8 - 165.3 751.5 1,040.6 145.0 1,185.6

Dividends - - - - - (433.2) (433.2) (61.9) (495.1)

Cost of stock options - - - - - 0.1 0.1 - 0.1

Treasury shares’ acquisitions/sales - - - 3.8 - - 3.8 - 3.8

Other movements - - - - - 78.3 78.3 248.8 327.1

At 30 June 2015 653.1 3,815.8 2,689.5 (244.9) (118.1) 7,066.9 13,862.3 1,443.4 15,305.7

Consolidated profi t (loss) for the year - - - - - 306.5 306.5 (38.7) 267.8

Other comprehensive income (loss) - - (960.6) - 45.2 6.1 (909.3) (59.9) (969.2)

Total comprehensive income (loss) - - (960.6) - 45.2 312.6 (602.8) (98.6) (701.4)

Dividends - - - - - - - 0.9 0.9


Other movements - - - - - (14.0) (14.0) (47.8) (61.8)

At 31 December 2015 653.1 3,815.8 1,728.9 (244.8) (72.9) 7,365.5 13,245.6 1,297.9 14,543.5

Consolidated profi t (loss) for the year - - - - - (888.4) (888.4) 77.3 (811.1)

Other comprehensive income (loss) - - 1,526.5 - 7.0 (36.1) 1,497.4 (7.6) 1,489.8

Total comprehensive income (loss) - - 1,526.5 - 7.0 (924.5) 609.0 69.7 678.7

Dividends - - - - - (444.5) (444.5) (64.0) (508.5)


Other movements - - - - - (11.7) (11.7) 7.7 (4.0)

At 30 June 2016 653.1 3,815.8 3,255.4 (237.2) (65.9) 5,984.8 13,406.0 1,311.3 14,717.3

Shareholders’ equity was impacted during the fi rst half of 2016 mainly by:

• the distribution by GBL on 5 May 2016 of a gross dividend of EUR 2.86 per share (EUR 2.79 in 2015), representing EUR 445 million, taking

into account the treasury shares held by GBL;

• the change in the fair value of GBL’s portfolio of available-for-sale investments (detailed in note 8.1);

• positive foreign currency translation adjustments; and

• the consolidated result for the period.

Consolidated statement of changes in shareholders’ equity


In EUR million Notes 30 June 2016 30 June 2015

Cash fl ow from operating activities 502.8 726.5

Consolidated profi t (loss) for the period before tax (738.1) 850.7

Adjustments for:

Interest income (expenses) 6 53.6 46.1

Share of profi t (loss) of associates 3 (11.6) 81.8

Dividends from investments in non-consolidated companies 4 (251.9) (191.7)

Net depreciation and amortisation expenses 132.3 128.6

Gains (losses) on disposals, impairments and reversals of non-current assets 1,251.2 (478.7)

Other income items not involving a cash impact (62.5) (78.4)

Interest received 14.2 7.5

Interest paid (48.9) (48.9)

Dividends received from investments in non-consolidated companies and associates 313.4 212.6

Income taxes paid (44.7) (28.2)

Changes in working capital:

Inventories 8.8 (29.4)

Trade receivables (76.1) (32.4)

Trade payables 19.2 22.0

Changes in other receivables and payables (56.1) 264.9

Cash fl ow from investing activities (16.8) (1,007.1)

Acquisitions of:

Investments (983.2) (6.8)

Subsidiaries, net of cash acquired (56.8) (381.1)

Tangible and intangible assets (129.8) (130.7)

Other fi nancial assets - (629.1)

Disposals/Divestments of:

Investments 1,054.8 123.1

Subsidiaries, net of cash paid 69.9 10.2

Tangible and intangible assets 23.4 2.3

Other fi nancial assets 4.9 5.0

Cash fl ow from fi nancing activities (39.4) (336.5)

Capital increase/(decrease) from non-controlling interests 14.2 84.8

Dividends paid by the parent company to its shareholders (444.5) (433.2)

Dividends paid by the subsidiaries to non-controlling interests (64.0) (61.9)

Proceeds from fi nancial liabilities 1,445.0 417.8

Repayments of fi nancial liabilities (932.9) (336.9)

Net changes in treasury shares 7.6 3.8

Others (64.8) (10.9)

Effect of exchange rate fluctuations on funds held 20.0 2.3

Net increase/(decrease) in cash and cash equivalents 466.6 (614.8)

Cash and cash equivalents at the beginning of the period 7 898.0 1,420.8

Cash and cash equivalents at the end of the period 7 1,364.6 806.0

Consolidated statement of cash fl ows


Accounting policies and seasonalityThe condensed consolidated fi nancial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as

adopted by the European Union.

The consolidated fi nancial statements for the half-year ended 30 June 2016 are in conformity with IAS 34 – Interim Financial Reporting.

The accounting and calculation methods used in the interim fi nancial statements are identical to those used in the annual fi nancial statements

for 2015, apart from the application, by the group, of new standards, interpretations and revisions which have become mandatory since

1st January 2016. These new standards did not have any material impact on GBL’s consolidated fi nancial statements.

Lastly, the seasonality of results is previously detailed in the outlook for 2016.

Estimates and judgementsIn terms of judgment, GBL analysed at 30 June 2016 the accounting treatment to be applied to the investment in Umicore and particularly the

classifi cation in (i) investments in associates (IAS 28), with the recognition of GBL’s share in the profi t or loss and shareholders’ equity of Umicore

or in (ii) available-for-sale investments (IAS 39), with the recognition of the investment at its fair value and the recognition of the dividend through

profi t or loss.

The arguments developed in the yearly fi nancial statements related to the fi nancial year 2015 still apply at 30 June 2016. As a result, GBL has

also decided to recognise its stake in Umicore as an available-for-sale asset.

Presentation of the consolidated fi nancial statementsThe consolidated statement of comprehensive income separately presents:

• Investing activities

Components of income resulting from investing activities, which include the operations of GBL and of its subsidiaries whose main purpose

is investment management. This includes Sienna Capital as well as the profi t (loss) of operating associates (Lafarge until 30 June 2015) and

non-consolidated operating companies (SGS, Pernod Ricard, adidas, LafargeHolcim, Total, ...); and

• Consolidated operating activities

Components of income from consolidated operating activities, i.e. from consolidated operating companies (Imerys as well as the sub-

groups De Boeck, ELITech, Benito, Sausalitos, Golden Goose, ...).

These defi nitions apply as well to the items “Other operating income (expenses)” and “Financial income (expenses)”.

1. Changes in group structure1.1. Sienna CapitalOn 1 March 2016 Ergon Capital Partners III acquired an indirect majority stake in Financière Looping Holding S.A.S. (Looping), an amusement

park operator. The purchase price was EUR 71 million. The net cash impact of this transaction amounts to EUR 41 million. The provisional

goodwill generated by the acquisition is EUR 56 million. This acquisition contributed EUR - 3 million (GBL share) to the group’s net result for

the period.

During the second quarter, Ergon Capital Partners III concluded an agreement relating to the sale of De Boeck Education SA, De Boeck Digital SA

and Larcier Holding SA. This operation generated a capital gain on disposal of EUR 51 million (GBL share). The net cash impact of this

transaction amounts to EUR 62 million.

2. Segment informationIFRS 8 – Operating Segments requires that segments be identifi ed based on internal reports which are regularly presented to the main

operating decision-maker for the purpose of managing the allocation of resources to the segments and assessing their performance.

In compliance with IFRS 8, the group has identifi ed three segments:

• Holding: consists of the parent company GBL and its subsidiaries. Its main activity is to manage investments as well as the non-

consolidated operating companies and associates.

• Imerys: consists of the Imerys group, a French group listed on Euronext Paris, which holds leading positions in each of its four business

lines (Energy Solutions & Specialities; Filtration & Performance Additives; Ceramic Minerals; High Resistance Minerals).

• Sienna Capital: includes, on the one hand, under investment activities; the companies Sienna Capital, ECP, ECP II and III, Sagard,

Sagard II and III, PrimeStone, BDT Capital Partners II, Kartesia and Mérieux Participations I and II; and, on the other, under consolidated

operating businesses, the operating subsidiaries of ECP III (sub-groups ELITech, De Boeck, Benito, Sausalitos, Golden Goose, ...).

The results, assets and liabilities of a segment include all the components directly attributable to it. The accounting standards applied to these

segments are the same as those described in the section entitled “Accounting policies and seasonality”.

Notes


2.1. Segment information - Consolidated income statement for the period ended 30 June 2016 and 30 June 2015 Period ended 30 June 2016 In EUR million Holding Imerys Sienna Capital Total

Share of profi t (loss) of associates - - 6.7 6.7

Net dividends from investments 251.9 - - 251.9

Other operating income (expenses) from investing activities (13.0) - (8.9) (21.9)

Gains (losses) on disposals, impairments and reversals

of non-current assets (1,312.1) - (0.2) (1,312.3)

Financial income (expenses) from investing activities 54.6 - (2.4) 52.2

Profi t (loss) from investing activities (1,018.6) - (4.8) (1,023.4)

Turnover - 2,096.7 165.5 2,262.2

Raw materials and consumables - (655.9) (61.7) (717.6)

Employee expenses - (446.9) (39.0) (485.9)

Depreciation of tangible and intangible assets - (116.7) (15.0) (131.7)

Other operating income (expenses) from operating activities - (619.1) 13.7 (605.4)

Financial income (expenses) of the operating activities - (27.5) (8.8) (36.3)

Profi t (loss) from consolidated operating activities - 230.6 54.7 285.3

Income taxes - (70.5) (2.5) (73.0)

Consolidated profi t (loss) for the period (1,018.6) 160.1 47.4 (811.1)

Attributable to the group (1,018.6) 86.3 43.9 (888.4)

Period ended 30 June 2015 In EUR million Holding Imerys Sienna Capital Total

Share of profi t (loss) of associates (100.4) - 14.6 (85.8)

Net dividends from investments 191.7 - - 191.7

Other operating income (expenses) from investing activities (16.2) - (5.5) (21.7)

Gains (losses) on disposals, impairments and reversals

of non-current assets 480.6 - (0.2) 480.4

Financial income (expenses) from investing activities 85.4 - (2.8) 82.6

Profi t (loss) from investing activities 641.1 - 6.1 647.2

Turnover - 2,057.3 122.9 2,180.2

Raw materials and consumables - (665.6) (45.6) (711.2)

Employee expenses - (431.5) (34.3) (465.8)

Depreciation of tangible and intangible assets - (114.9) (12.9) (127.8)

Other operating income (expenses) from operating activities - (613.8) (30.1) (643.9)

Financial income (expenses) of the operating activities - (23.5) (4.5) (28.0)

Profi t (loss) from consolidated operating activities - 208.0 (4.5) 203.5

Income taxes - (61.1) (1.5) (62.6)

Consolidated profi t (loss) for the period 641.1 146.9 0.1 788.1

Attributable to the group 641.1 77.5 1.3 719.9


2.2. Segment information - Consolidated balance sheet at 30 June 2016, 31 December 2015 and 30 June 2015Period ended 30 June 2016 In EUR million Holding Imerys Sienna Capital Total

Non-current assets 12,053.6 4,140.1 1,097.5 17,291.2

Intangible assets - 72.9 208.3 281.2

Goodwill - 1,619.1 142.5 1,761.6

Tangible assets 12.9 2,131.6 106.6 2,251.1

Investments 12,040.7 146.3 624.4 12,811.4

Investments in associates - 144.5 222.7 367.2

Available-for-sale investments 12,040.7 1.8 401.7 12,444.2

Other non-current assets - 87.7 9.6 97.3

Deferred tax assets - 82.5 6.1 88.6

Current assets 1,129.9 2,462.5 230.7 3,823.1

Inventories - 722.5 39.8 762.3

Trade receivables 0.3 638.4 60.7 699.4

Trading fi nancial assets 628.7 9.6 - 638.3

Cash and cash equivalents 436.0 810.2 118.4 1,364.6

Other current assets 64.9 281.8 11.8 358.5

Total assets 13,183.5 6,602.6 1,328.2 21,114.3

Non-current liabilities 847.6 2,878.1 320.7 4,046.4

Financial liabilities 822.9 2,115.9 258.7 3,197.5

Provisions 0.5 310.1 1.5 312.1

Pensions and post-employment benefits 3.1 372.6 3.8 379.5

Other non-current liabilities 14.4 46.6 3.8 64.8

Deferred tax liabilities 6.7 32.9 52.9 92.5

Current liabilities 1,161.0 1,080.4 109.2 2,350.6

Financial liabilities 1,091.0 252.7 19.8 1,363.5

Trade payables 2.3 448.7 58.7 509.7

Provisions - 21.2 1.3 22.5

Tax liabilities 4.5 84.2 15.0 103.7

Other current liabilities 63.2 273.6 14.4 351.2

Total liabilities 2,008.6 3,958.5 429.9 6,397.0


Period ended 31 December 2015 In EUR million Holding Imerys Sienna Capital Total

Non-current assets 11,995.8 4,189.1 939.2 17,124.1


Goodwill - 1,631.3 111.9 1,743.2

Tangible assets 13.7 2,141.9 36.5 2,192.1

Investments 11,982.1 129.3 534.6 12,646.0





Current assets 1,142.8 1,979.7 159.0 3,281.5

Inventories - 738.3 37.8 776.1

Trade receivables - 578.1 66.3 644.4


Cash and cash equivalents 436.1 415.1 46.8 898.0


Total assets 13,138.6 6,168.8 1,098.2 20,405.6

Non-current liabilities 1,896.7 2,224.2 258.7 4,379.6

Financial liabilities 1,797.0 1,500.0 191.6 3,488.6

Provisions 0.5 304.2 1.4 306.1

Pensions and post-employment benefits 3.0 322.9 3.7 329.6



Current liabilities 45.8 1,272.7 164.0 1,482.5

Financial liabilities - 427.3 49.2 476.5

Trade payables 2.5 441.0 52.5 496.0

Provisions - 19.2 1.6 20.8





Period ended 30 June 2015 In EUR million Holding Imerys Sienna Capital Total

Non-current assets 9,073.0 4,284.4 863.2 14,220.6


Goodwill - 1,738.1 194.1 1,932.2

Tangible assets 15.1 2,182.3 35.6 2,233.0

Investments 9,057.9 140.7 487.0 9,685.6





Current assets 4,659.2 2,137.9 185.0 6,982.1

Inventories - 781.8 37.6 819.4

Trade receivables 0.1 656.8 74.7 731.6


Cash and cash equivalents 352.6 423.0 30.4 806.0


Assets held for sale 3,588.1 - - 3,588.1

Total assets 13,732.2 6,422.3 1,048.2 21,202.7

Non-current liabilities 1,925.3 2,176.5 185.2 4,287.0

Financial liabilities 1,788.7 1,500.8 147.4 3,436.9

Provisions 0.5 290.3 2.4 293.2

Pensions and post-employment benefi ts 21.1 274.3 4.1 299.5



Current liabilities 82.0 1,309.0 219.0 1,610.0

Financial liabilities 3.6 439.4 104.0 547.0

Trade payables 2.6 492.3 51.0 545.9

Provisions - 20.9 - 20.9




3. Associates 3.1. Share of profi t (loss) In EUR million 30 June 2016 30 June 2015

Lafarge - (100.4)

ECP I & II (0.1) 13.6

Kartesia 6.8 0.6

Mérieux Participations II - 0.4

Share of profi t (loss) of associates – investing activities 6,7 (85.8)

Associates related to consolidated operating activities (shown under "Other operating income (expenses)") 4.9 4.0

Total 11.6 (81.8)

ECP’s contribution at 30 June 2016 was not signifi cant. It amounted to EUR 14 million in 2015, positively infl uenced by the net capital gain on

the disposal of the stake in Joris Ide (EUR 14 million). Kartesia’s result (EUR 7 million at 30 June 2016) primarily includes interests on loans and

the variation in the fair value of these loans.

Lafarge’s results at 30 June 2015 amounted to EUR - 477 million. Based on GBL’s ownership rate, Lafarge contributed EUR - 100 million.


3.2. Value of investments under equity method

In EUR million ECP I & II KartesiaMérieux

Participations II I.P.E. Others Total

At 31 December 2015 42.6 116.1 8.6 36.4 126.2 329.9

Investments - 24.0 9.9 - - 33.9

Reimbursements/disposals - (4.8) - - (0.9) (5.7)

Profi t (loss) for the period (0.1) 6.8 - 1.4 3.5 11.6

Distribution (18.2) - - - (4.3) (22.5)

Foreign currency translation adjustments - - - - - -

Changes in revaluation reserves/hedging - - - - - -

Actuarial gains (losses) - - - - - -

Other movements - - - - 20.0 20.0

At 30 June 2016 24.3 142.1 18.5 37.8 144.5 367.2

The “Others” heading includes the associated companies of Imerys.

3.3. Gains (losses) on disposals, impairments and reversals of non-current assetsIn EUR million 30 June 2016 30 June 2015

Impairments of available-for-sale investments and reversals of non-current assets - 403.1

Total - 403.1

This heading included in 2015 the partial reversal of an impairment of EUR 403 million on Lafarge, in accordance with IFRS 5. This reversal

resulted in a re-statement at fair value at 30 June 2015 of the stake held in Lafarge, which was previously recorded according to the equity

accounting method.

4. LafargeHolcim, SGS, ENGIE, Total, adidas, Pernod Ricard and other available-for-sale investments

4.1. Net dividends from investmentsIn EUR million 30 June 2016 30 June 2015

LafargeHolcim 77.9 -

SGS 72.9 67.1

ENGIE 23.2 23.2

Total 22.7 73.7

adidas 18.8 2.6

Pernod Ricard 17.9 16.3

Umicore 13.3 7.3

Ontex 5.2 1.0

Others - 0.5

Total 251.9 191.7

Net dividends from investments in the fi rst half of 2016 posted a large increase of EUR 60 million compared with 2015. These changes

essentially refl ect the payment of the LafargeHolcim dividend (Lafarge was previously consolidated according to the equity method, hence the

dividend was cancelled in the consolidated fi nancial statements of GBL) and the increase in dividends from the Incubator portfolio and from

adidas following the acquisitions made. The partial disposal of the stake in Total has reduced this growth.


4.2. Fair value and variationInvestments in listed companies are valued on the basis of the share price at the reporting date.

Investments held by the “Funds”, namely Sagard, Sagard II and Sagard III, Mérieux Participations I, BDT Capital Partners II and PrimeStone are

re-valued at their fair value, determined by the managers of these funds according to their investment portfolio.

In EUR million

31 December 2015

Acquisitions/ (Disposals)

(Impairments)/ Reversals

in case of disposal

Change in revaluation

reservesResults of

Funds/Others 30 June 2016

SGS 2,066.9 - - 350.0 - 2,416.9

LafargeHolcim 2,674.2 - (1,682.4) 1,131.8 - 2,123.6

Pernod Ricard 2,092.7 - - (119.3) 17.9 1,991.3

adidas 889.9 516.6 - 526.0 - 1,932.5

Total 2,462.5 (621.7) - (428.1) (16.1) 1,396.6

Umicore 720.2 14.4 - 146.8 - 881.4

ENGIE 892.6 - (43.7) (55.6) - 793.3

Funds 327.7 49.3 - 22.3 (1.7) 397.6

Ontex 180.6 164.3 - (27.1) - 317.8

Others 8.8 202.8 - (18.4) - 193.2

Fair value 12,316.1 325.7 (1,726.1) 1,528.4 0.1 12,444.2

4.3. Gains (losses) on disposals, impairments and reversals of non-current assets In EUR million 30 June 2016 30 June 2015

Capital gains on available-for-sale investments 428.1 77.5

Impairments of available-for-sale investments (1,727.9) -

Total cost related to the repurchases of bonds exchangeable into ENGIE shares (12.3) -

Total (1,312.1) 77.5

At 30 June 2016, this heading included mainly:

• The capital gain from the sale of 1.1% of Total’s capital for EUR 428 million;

• An impairment of EUR 1,682 million on the LafargeHolcim investment, adjusting the book value of these shares (EUR 66.49 per share) to their

market value at 30 June 2016 (EUR 37.10 per share);

• An additional impairment of EUR 44 million, accounted for the ENGIE investment in the fi rst quarter of 2016, thus adjusting the book value of

these shares (EUR 14.44 per share at end December 2015) to their market value at 31 March 2016 (EUR 13.64 per share); and

• The repurchase of the bonds exchangeable into ENGIE shares (explained in note 7.2) generated a total cost of EUR 12 million at 30 June 2016.

In 2015, the heading included on the one hand the capital gain from the sale of 0.1% of Total’s capital for EUR 42 million and, on the other hand, the

result from the early conversions of bonds exchangeable into Suez shares for EUR 35 million (corresponding to the recycling of the revaluation

reserves of the converted shares, calculated based on the average share price of Suez during the fi rst half of 2015).

5. Other operating income (expenses)In EUR million 30 June 2016 30 June 2015

Other operating income 0.5 0.5

Other operating expenses (22.4) (22.2)

Other operating income (expenses) – investing activities (21.9) (21.7)

Other operating income 91.5 35.9

Other operating expenses (701.8) (683.8)

Share of profi t (loss) of associates belonging to consolidated operating activities 4.9 4.0

Other operating income (expenses) – consolidated operating activities (605.4) (643.9)


6. Financial income (expenses) In EUR million 30 June 2016 30 June 2015

Interest income on cash, cash equivalents and non-current assets 2.2 9.6

Interest expenses on fi nancial liabilities (22.3) (24.7)

Gain (losses) on trading securities and derivatives 74.5 100.5

Other fi nancial income (expenses) (2.2) (2.8)

Financial income (expenses) – investing activities 52.2 82.6

Interest income on cash, cash equivalents and non-current assets 6.0 4.3

Interest expenses on fi nancial liabilities (39.5) (35.3)

Gain (losses) on trading securities and derivatives 5.0 (2.3)

Other fi nancial income (expenses) (7.8) 5.3

Financial income (expenses) - consolidated operating activities (36.3) (28.0)

Financial income (expenses) from investing activities totalled EUR 52 million (compared with EUR 83 million in 2015).

They mainly include:

• the mark to market of the derivative component associated with the exchangeable bonds into ENGIE shares and with GBL convertible

bonds (EUR 72 million in 2016 compared with EUR 67 million in 2015). This non-monetary gain of EUR 72 million includes the change

in the value of the call options on underlying securities implicitly contained in the exchangeable and convertible bonds issued by GBL

in 2013;

• the mark to market of the derivative instruments (EUR - 10 million in 2016 compared with EUR 43 million in 2015). The derivative instruments

at 30 June 2015 essentially included forward contracts for the sale of Total shares maturing in December 2015 (fair value of EUR 38 million).

During the fi rst half of 2016, GBL concluded forward contracts with prepayment related to ENGIE and Total shares for 32.1 million and 7.8 million

shares respectively. GBL applied hedge accounting to all its forward contracts and therefore recorded an amount of EUR - 13 million for ENGIE

and EUR - 7 million for Total under shareholders’ equity. At the maturity date of the forward sales, their mark to market value will be 0 and,

at the same time, a capital gain of EUR 209 million and a capital loss of EUR 1 million will be recognised for Total and ENGIE respectively.

Financial income (expenses) on consolidated operating activities resulted essentially from interest expenses on Imerys’ debt amounting

to EUR 31 million.

7. Cash and debt7.1. Cash and cash equivalentsIn EUR million 30 June 2016 31 December 2015

Treasury bonds and treasury notes (corporate, sovereign) 15.0 15.0

Deposit (maturity <3 months) 428.0 128.5

Current accounts 921.6 754.5

Total 1,364.6 898.0

At 30 June 2016, a large majority of cash was held in fi xed-term deposits and current accounts with various fi nancial institutions. The increase

of cash and cash equivalents during the six month period stems primarily from an increase in Imerys’ deposits and current accounts.


7.2. DebtIn EUR million 30 June 2016 31 December 2015

Non-current fi nancial liabilities 3,197.5 3,488.6

Exchangeable bonds (GBL) - 991.2

Convertible bonds (GBL) 429.7 425.3

Retail bonds (GBL) 350.0 350.0

Bonds (Imerys) 2,105.3 1,491.2

Other non-current fi nancial liabilities 312.5 230.9

Current fi nancial liabilities 1,363.5 476.5

Exchangeable bonds (GBL) 327.2 -

Bank debt (GBL) 763.8 -

Bank debt (Imerys) 224.7 402.8

Other current fi nancial liabilities 47.8 73.7

The group’s debt increased by EUR 596 million, primarily at GBL, due to forward sales of shares with prepayment with fi nancial institutions for a total

amount of EUR 764 million, the issue of two new bonds at Imerys (EUR 600 million) and partly balanced by the repurchase of bonds exchangeable

into ENGIE shares for EUR 668 million.

At 30 June 2016, GBL had undrawn credit lines of EUR 1,950 million (EUR 1,950 million at 31 December 2015).

Exchangeable and convertible bonds (GBL)Bonds exchangeable into ENGIE shares

During the fi rst half of 2016, the group took advantage of favourable market conditions to repurchase bonds exchangeable into ENGIE shares

for a total amount of EUR 668 million in nominal value at an average price of 101.2% (excluding banking fees). These repurchases generated

an expense of EUR 12 million recognised under the heading “Gains (losses) on disposals, impairments and reversals of non-current assets”.

Furthermore, EUR 3 million was repaid early to bondholders following the exercise of the investor put.

The book value of this bond (excluding the option) was EUR 327 million at 30 June 2016 (EUR 991 million at 31 December 2015).

The option component was valued at fair value on the reporting date for an amount of EUR 1 million (EUR 51 million at 31 December 2015)

as shown under “Other current liabilities”.

Bondholders may request the exchange of their bonds for ENGIE shares subject to the option of GBL to instead pay in cash all or part of the

value of ENGIE shares in lieu of such exchange.

Bonds convertible into GBL shares

The book value of this bond (excluding the option) was EUR 430 million at 30 June 2016 (EUR 425 million at 31 December 2015).

The option component was valued at fair value on the reporting date for an amount of EUR 9 million (EUR 32 million at 31 December 2015)

as shown under “Other non-current liabilities”.

Bondholders may request the exchange of their bonds for GBL shares subject to the option of GBL to instead pay in cash all or part of the value

of GBL shares in lieu of such exchange.

Bank debts (GBL)During the fi rst half of the year, GBL concluded forward contracts with prepayment related to ENGIE and Total shares for 32.1 million and

7.8 million shares respectively maturing in the fourth quarter of 2016. The group therefore received EUR 764 million in cash and recognised bank

debt for the same amount.

At 30 June 2016, the drawdown under bank credit lines amounted to EUR 200 million maturing in November 2016 (EUR 200 million maturing in

November 2016 at 31 December 2015). Since 2013, GBL has put in place a bank deposit with the same characteristics as the bank drawdown,

consisting of EUR 200 million maturing in November 2016 (EUR 200 million at 31 December 2015). In accordance with a netting agreement

signed with the counterparty, this deposit was offset against the corresponding bank borrowing, in accordance with IFRS.


Bonds (Imerys)Imerys has issued listed and non-listed bonds. The detail of these bond issues at 30 June 2016 is as follows:

Nominal value in currency

In million

Nominal interest rate

Effective interest rate

Listed/Non-listed

Maturity date

Fair value In EUR million

Carrying amount In EUR million

JPY 7,000 3.40% 3.47% Non-listed 16/09/2033 96.8 62.0

USD 30 5.28% 5.38% Non-listed 06/08/2018 30.1 27.6

EUR 300 2.50% 2.60% Listed 26/11/2020 330.1 304.5

EUR 100 2.50% 1.31% Listed 26/11/2020 110.0 101.5

EUR 500 5.00% 5.09% Listed 18/04/2017 524.6 505.1

EUR 500 2.00% 2.13% Listed 10/12/2024 550.1 505.6

EUR 300 0.88% 0.96% Listed 31/03/2022 304.5 300.7

EUR 300 1.88% 1.92% Listed 31/03/2028 314.5 301.4

Total 2,260.7 2,108.4

The detail of these bond issues at 31 December 2015 is as follows:

Nominal value in currency

In million

Nominal interest rate

Effective interest rate

Listed/Non-listed

Maturity date

Fair value In EUR million

Carrying amount In EUR million

JPY 7,000 3.40% 3.47% Non-listed 16/09/2033 76.6 53.9

USD 30 5.28% 5.38% Non-listed 06/08/2018 30.9 28.1

EUR 300 2.50% 2.60% Listed 26/11/2020 319.9 300.7

EUR 100 2.50% 1.31% Listed 26/11/2020 106.6 100.2

EUR 500 5.00% 5.09% Listed 18/04/2017 547.2 517.6

EUR 500 2.00% 2.13% Listed 10/12/2024 509.8 500.6

Total 1,591.0 1,501.1

Other non-current financial liabilitiesThis heading mainly includes the debts of the operating subsidiaries of ECP III. These debts are contracted with banks and non-controlling interests.

8. Shareholders’ equity8.1. Revaluation reservesThese reserves include changes in the fair value of available-for-sale investments and the reserves of equity-accounted entities. The heading

“Others” mainly covers GBL’s share of the changes in the revaluation reserves of associates.

In EUR million Total SGS ENGIEPernod Ricard Umicore Ontex

Lafarge-Holcim adidas Funds Others Total

At 31 December 2015 1,077.5 56.3 103.1 1,266.6 76.4 37.0 (1,131.8) 231.2 15.7 (3.1) 1,728.9

Change resulting from

the change in fair value 68.1 350.0 (99.3) (118.9) (1) 146.2 (1) (27.0) (1) (550.6) 524.2 (1) 22.3 (18.4) 296.6

Transfers to profi t (loss)

(disposal/impairment) (496.2) - 43.7 - - - 1,682.4 - - - 1,229.9

At 30 June 2016 649.4 406.3 47.5 1,147.7 222.6 10.0 - 755.4 38.0 (21.5) 3,255.4

(1) Including a tax impact of EUR 0.4 million, EUR 0.1 million, EUR - 0.6 million and EUR - 1.8 million on Pernod Ricard, Ontex, Umicore and adidas respectively


8.2. Earnings per shareConsolidated net result for the period (group’s share)In EUR million 30 June 2016 30 June 2015

Basic (888.4) 719.9

Diluted (905.9) 740.8

Number of sharesIn million of shares 30 June 2016 30 June 2015

Issued shares 161.4 161.4

Treasury shares at beginning of the period (6.1) (6.2)

Weighted changes for the period - -

Weighted average number of shares used to determine basic earnings per share 155.3 155.2

Impact of fi nancial instruments with diluting effect:

Convertible bonds 5.0 5.0

Stock options (in the money) 0.3 0.5

Weighted average number of shares used to determine diluted earnings per share 160.6 160.7

At 30 June 2016, GBL held, directly and through its subsidiaries, 5,943,077 GBL shares, representing 3.7% of the issued capital.

Summary earnings per shareIn EUR 30 June 2016 30 June 2015

Basic (5.72) 4.64

Diluted (5.72) 4.61

9. Financial instrumentsTo refl ect the importance of inputs used when measuring at fair values, the group classifi es these valuations according to a hierarchy composed

of the following levels:

• level 1: listed prices (non-adjusted) in active markets for identical assets or liabilities;

• level 2: inputs, other than the listed prices included within level 1, that are observable for the asset or liability concerned, either directly

(i.e. prices) or indirectly (i.e. derived from prices); and

• level 3: inputs related to the asset or liability that are not based on observable market data (non-observable inputs).

The tables below show a comparison of the book value and the fair value of the fi nancial instruments at 30 June 2016, as well as the fair value

hierarchy. The category, according to IAS 39, uses the following abbreviations:

AFS: Available-For-Sale fi nancial assets

HTM: fi nancial assets Held-To-Maturity

LaR: Loans and Receivables

FVTPL: fi nancial assets/liabilities at Fair Value Through Profi t and Loss

OFL: Other Financial Liabilities

HeAc: Hedge Accounting


In EUR million

Category under IAS 39 Carrying amount Fair value

Hierarchy of fair values

Financial assets

Non-current assets

Available-for-sale investments

Listed companies AFS 12,039.9 12,039.9 Level 1

Other companies AFS 404.3 404.3 Level 3

Other non-current assets

Derivative instruments - hedging HeAc 0.5 0.5 Level 2

Derivative instruments - others FVTPL 24.2 24.2 Level 2

Other fi nancial assets LaR 65.7 65.7 -

Current assets

Trade receivables LaR 699.4 699.4 -

Trading fi nancial assets FVTPL 638.3 638.3 Level 1

Cash and cash equivalents LaR 1,364.6 1,364.6 -

Other current assets


Other fi nancial assets LaR 59.8 59.8 -

Financial liabilities

Non-current liabilities



Derivative instruments - others FVTPL (1.1) (1.1) Level 2

Other fi nancial liabilities OFL 3,174.4 3,373.2 -

Other non-current liabilities

Other fi nancial liabilities OFL 6.1 6.1 -

Derivative instruments - hedging HeAc (0.1) (0.1) Level 2


Current liabilities


Derivative instruments FVTPL 2.2 2.2 Level 2

Other fi nancial liabilities OFL 1,361.3 1,365.9 -

Trade payables OFL 509.7 509.7 -

Other current liabilities



Other current liabilities OFL 30.1 30.1 -

There is no signifi cant transfer between the different levels during the period closed on 30 June 2016.


10. Subsequent eventsSienna CapitalErgon Capital Partners announced on 19 July 2016 that it has completed a fund increase of EUR 150 million to bring the size of its third fund

(ECP III) to EUR 500 million. The EUR 150 million increase was committed by Sienna Capital and a select number of European institutional

investors active in private equity.

Sagard and Equistone have reached a defi nitive agreement to sell the remaining activities of FläktWoods to Triton. The transaction is expected

to close before the end of October 2016.

11. Certifi cation of Responsible PersonsIan Gallienne and Gérard Lamarche, Managing Directors, and William Blomme, Chief Financial Offi cer, certify, in the name and on behalf of GBL,

that to the best of their knowledge:

• The condensed consolidated fi nancial statements for the six months ended 30 June 2016 have been prepared in accordance with IFRS and

present a true and fair view of the assets, fi nancial position and results of GBL and its consolidated companies (1) ;

• The half-yearly report presents a true and fair view of the business developments, results and position of GBL and its consolidated companies;

• The main risks and uncertainties regarding the remaining months of 2016 are in keeping with the assessment presented in the section “Risk

Management and Internal Control” of GBL’s 2015 Annual Report and take into account the current economic and fi nancial environment.

(1) “Consolidated companies” are GBL’s subsidiaries within the meaning of Article 6 of the Companies Code


Statutory Auditor’s report


GlossaryAdjusted net assetsThe change in GBL’s adjusted net assets, along with the change in

its share price and results, is an important criterion for assessing the

group’s performance.

The adjusted net assets are a conventional reference obtained by

adding gross cash, treasury shares and deducting gross debt to the

fair value of the investment portfolio.

The following valuation principles are applied:

• Investments in listed companies and GBL treasury shares are

valued at the closing price. However, the value of shares underlying

any commitments made by the group is capped at the conversion/

exercise price.

• Investments in unlisted companies are valued at their book value,

less any impairment, or at their share in shareholders’ equity, with

the exception of the companies of Sienna Capital, not consolidated

or accounted for using the equity method, which are marked to

market as provided by the fund managers.

PortfolioThe portfolio includes:

• The available-for-sale investments and investments in associates

in the Holding segment;

• Imerys; and

• Sienna Capital and the companies active in private equity, debt

and specifi c thematic funds.

Cash and debtNet cash or, where applicable, net debt (excluding treasury shares),

consists of gross cash (including quasi-liquidities) and gross debt.

Gross debt includes all the fi nancial liabilities of the Holding segment

(convertible and exchangeable bonds, retail bond and bank debt),

valued at their nominal value.

Gross cash includes the cash and cash equivalents as well as the

quasi-liquidities (trading assets, etc.) of the Holding segment. This is

valued at the book or market value.

The cash and debt indicators are presented for the Holding segment

to refl ect GBL’s own fi nancial structure and the fi nancial resources

available to implement its strategy.

Economic presentation of the consolidated resultCash earnings• Cash earnings primarily include dividends from investments

of the portfolio, income coming mainly from treasury management,

net earnings from the trading activity and tax refunds, less

overheads, gross debt-related charges and taxes.

Cash earnings also constitute a factor for determining the company’s

dividend payout level. All these elements are related to the Holding

segment.

Mark to market and other non-cash• The concept of mark to market is one of the foundations of the

fair value method of valuation as defi ned in IFRS international

accounting standards, the principle of which is to value assets

at their market value on the last day of the fi nancial year.

• Mark to market and other non-cash items in GBL’s accounts

refl ect the changes in fair value of the fi nancial instruments bought

or issued (exchangeable or convertible bonds, trading assets,

options), the actuarial costs of fi nancial liabilities valued at their

amortised cost, as well as the ajustment of certain elements of

cash earnings in accordance with IFRS rules (dividends decided

but not paid out during the fi nancial year but after the date of

approval of the fi nancial statements, dividends on treasury shares,

etc.). These changes do not infl uence the group’s cash position.

All these elements are related to the Holding segment.

Operating companies (associated or consolidated) and Sienna Capital• This column shows earnings from associated operating companies,

namely operating companies in which the group has signifi cant

infl uence. Signifi cant infl uence is presumed to exist if the group

has more than 20% voting rights, directly or indirectly through its

subsidiaries. Associated operating companies are recorded in the

consolidated fi nancial statements using the equity method.

• Also included is income, group’s share, from consolidated

operating companies, i.e. controlled by the group. Control

is presumed to exist when GBL has more than 50% voting rights in

an entity, either directly or indirectly.

• This column also includes the contribution of result from

Sienna Capital.

Eliminations, capital gains, impairments and reversals The eliminations, capital gains, impairments and reversals include the

elimination of dividends received from associated or consolidated

operating companies as well as results from disposals, impairments

and reversals of non-current assets and on discontinued activities. All

these elements are related to the Holding segment.


Group’s shareholding• In capital: the percentage interest held directly and indirectly

through consolidated intermediate companies, calculated on the

basis of the number of shares in issue on 31 December.

• In voting rights: the percentage held directly or indirectly through

consolidated intermediate companies, calculated on the basis of

the number of voting rights existing on 31 December, including

suspended voting rights.

Loan to ValueThe Loan to Value ratio is calculated on the basis of (i) GBL’s net

indebted ness relative to (ii) the portfolio’s value of GBL increased by

the value of the treasury shares underlying the bonds convertible into

GBL shares. The methods for valuing the portfolio and treasury shares

are identical to those used for the adjusted net assets.

DiscountThe discount is defi ned as the percentage difference between the

market capitalisation and the value of the adjusted net assets.


Dit halfjaarlijks verslag is ook verkrijgbaar in het Nederlands

Ce rapport semestriel est également disponible en français

Design and production: www.landmarks.be

© Fotography: Cover: © David Plas © [email protected] - Corporate Communications & IR - SGS, © Médiathèque Lafarge - ConstructionPhotography.com - Paul McMullin,

© Dominique Lecuivre Imerys, © Ontex, © Muguet Julien - Total, © adidas Group, © Pernod Ricard, © Umicore. Page 12: © Dominique Lecuivre Imerys,

© [email protected] - Corporate Communications & IR -SGS. Page 13: © Médiathèque Lafarge - ConstructionPhotography.com - Paul McMullin,

© Pernod Ricard. Page 14: © adidas Group, © Luttenbacher Julien - Capa – Total. Page 15: © Umicore, © Ontex.

For further information

Groupe Bruxelles Lambert

Avenue Marnix 24

1000 Brussels

Belgium

RLE: Brussels

VAT: BE 407 040 209

ING: 310-0065552-66

IBAN: BE 07 3100 0655 5266

BIC: BBRU BEBB

For more information about GBL:

Tel.: +32 (0)2 289 17 17

Fax: +32 (0)2 289 17 37

www.gbl.be

half-yearly report on 30 june 2016 - gbl · consolidated results - economic presentation ......

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